Small Chinese exporters have found ways to bypass Trump’s tariffs

Chinese exporters are routing goods through nearby nations to disguise their origin and dodge tariffs of up to 145% imposed by United States President Donald Trump, according to traders, logistics agents and customs officials. Advertisements for “place‑of‑origin washing” have started appearing on popular Chinese social media sites, according to Financial Times . The posts promise to lower tariffs by sending the goods to another Asian country from where they’ll leave again carrying a fresh certificate of origin, allowing them to clear U.S. customs at the lower duty rate. The surge in such offers shows how worried exporters are about losing the American market. “The tariff is too high,” said Sarah Ou, who sells for Baitai Lighting in Zhongshan, Guangdong. “We can sell the goods to neighboring countries, and then the neighboring countries sell them on to the United States, and it will reduce.” Under U.S. trade rules, a shipment must undergo “substantial transformation” — processing that adds real value — before it can legally claim a new national origin. Yet one post on lifestyle app Xiaohongshu this week urged shippers to “Transit through Malaysia to ‘transform’ into Southeast Asian goods.” Another highlighted U.S. tariffs on Chinese wooden flooring and tableware, adding, “Wash the origin in Malaysia for smooth customs clearance.” Officials across Asia say more companies are bypassing tariffs South Korea’s customs service last month reported finding 29.5 billion won (about $21 million) worth of imports with false origin labels in the first quarter, mostly Chinese goods bound for the United States. “We are seeing a sharp increase in recent cases where our country is used as a bypass,” the agency said, noting many cartons were restamped “Made in Korea.” Vietnam’s industry and trade ministry has urged local manufacturers and export groups to tighten checks on raw‑material origins and stop fake certificates. Thailand’s foreign trade department rolled out extra inspections in April aimed at U.S.‑destined shipments. Two freight forwarders told the Financial Times they can move containers to Port Klang, Malaysia, unload them, retag the cartons and reload them with Malaysian paperwork. They rely on partner plants in Malaysia that help secure the new certificates. “The U.S. must know of it,” one agent said. “It cannot get too crazy so we are controlling the amount.” The other added, “Malaysian customs are not very strict.” Some exporters are mixing expensive items with cheaper ones in a single consignment A consultant who advises exporters said origin‑washing is one of two main tactics now used to blunt Trump’s tariffs . The second involves mixing expensive items with cheaper goods in one consignment, then declaring the average price so the duty bill is lower. The work‑arounds also unsettle American retailers. A senior executive at one of Amazon’s ten largest independent sellers said they had already seen shipments arrive with altered origin papers, risking confiscation. The executive turns down suppliers’ offers to handle U.S. import paperwork and pay duty based on factory cost, not retail value. “You’re putting a lot of trust in a Chinese supplier,” the executive said. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now